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February, 2011

NEWS BULLETIN
Monday, February 28, 2011

Transportation secretary praises
federal funds for NW rail corridor

WASHINGTON, DC — U.S. Transportation Secretary Ray LaHood issued the following statement: “President Obama's historic investments in a national high-speed rail network will enable America to win the future by creating construction and manufacturing jobs today and laying the foundation for future economic growth. By building safe, reliable and energy- efficient passenger rail corridors we will be able to help small businesses thrive and move people and goods more quickly than ever before. I am thrilled to congratulate the State of Washington, BNSF, and Amtrak for their contributions to the agreement signed today (Feb. 26) by the Federal Railroad Administration and Washington DOT that will make $590 million available for work to begin on significant improvements to the popular Cascades corridor, which connects Eugene, Portland, Seattle, and Vancouver. Thanks to the hard work, dedication, and flexibility of all parties involved in the negotiations, this agreement will immediately put Washingtonians to work in good paying jobs, significantly improve rail service for commuters and travelers, and preserve the world-class freight rail system America has today.”


University Place train derailment
leaks sodium hydroxide onto shoreline

SEATTLE — The Coast Guard, Department of Ecology, Burlington Northern Santa Fe Railway Company and contractors are continuing to respond to a train derailment south of the Tacoma Narrows Bridge in University Place, Wash., that occurred Saturday at approximately 8 p.m. Fourteen rail cars derailed, four of which contain sodium hydroxide. Two separate fittings on one tank car leaked approximately 50 gallons of sodium hydroxide solution onto the shoreline. One leak has been plugged and the other leak is being contained. Firefighters from West Pierce Fire & Rescue were first on scene and determined that the freight-carrying trains were traveling in opposite directions when the accident occurred. The leak, which has now stopped, is estimated at 50 gallons. It does not appear a significant amount of sodium hydroxide has entered the water. The Coast Guard has issued a broadcast notice to mariners near the derailment warning boaters to stay clear due to the potential hazards of sodium hydroxide. Sodium hydroxide can create toxic gases when mixed with water and can cause burns to the respiratory tract, skin, eyes, and gastrointestinal tract according to the Emergency Response Guide and Marine Safety Data Sheet. There are no reports of injuries and the cause of the derailment is unknown.


Boeing 777 freighter
marks two years of service

SEATTLE — Hauling everything from giant panda bears to high-performance race cars the Boeing 777 freighter has completed two years of service. The fleet of 777 freighters has flown approximately 120,000 hours and boasts a daily utilization rate of 11.34 hours. Fleet schedule reliability is at 99.37 percent, which means the freighter has a near-perfect record of on-time takeoff and landings. Eighty-three have been ordered, and 39 freighters now are in service with nine airlines. FedEx Express is the largest 777 freighter operator with a fleet of 11 currently in operation, and another airplane just delivered. An additional 13 777 freighters remain in Boeing's backlog for FedEx. Emirates SkyCargo, the freight division of Emirates airline, now operates two 777 freighters. The 777 freighter is the world's longest-range, twin- engine freighter and features the lowest trip cost of any large freighter, with high- cargo density and 10-foot (3.1-meter) interior height capability that complements the popular 747 freighter family. The 777 freighter can fly 4,900 nautical miles (9,070 kilometers) with a full payload of 225,200 pounds (102 metric tons). The 777 freighter is powered by General Electric's GE90-110B1L and meets QC2 noise standards.


Horizon Lines making changes
to several executive positions

CHARLOTTE, NC — Horizon Lines, Inc. has announced that the company's board of directors has named Alex J. Mandl to the position of chairman and appointed Stephen H. Fraser as interim president and chief executive officer (CEO), succeeding Chairman, President and Chief Executive Officer Charles G. "Chuck" Raymond, who is retiring. Additionally, Brian W. Taylor has been named executive vice president and chief operating officer (COO), succeeding John V. Keenan, who has been granted a leave of absence. Mr. Taylor assumes the COO responsibilities in addition to his current role as chief commercial officer. At the same time, the board has promoted Michael T. Avara from senior vice president and chief financial officer to executive vice president and chief financial officer. All changes are effective March 11, 2011. In naming Mr. Mandl and Mr. Fraser to the positions of chairman and chief executive officer, respectively, the board has split the responsibilities of chairman and chief executive officer into two positions. Both Mr. Mandl and Mr. Fraser are members of the company's board. Mr. Fraser will serve as president and chief executive officer until the board identifies a new CEO to serve on a permanent basis. The board is initiating a search process and is engaging a leading executive search firm to assist in identifying candidates to serve as CEO.


Cargill making commitment
to wind-powered commercial vessel

GENEVA — Cargill has signed an agreement with SkySails GmbH & Co. KG (SkySails) to use wind power technology to reduce greenhouse gas emissions in the shipping industry. SkySails, based in Hamburg, has developed innovative, patented technology that uses a kite which flies ahead of the vessel and generates enough propulsion to reduce consumption of bunker fuel by up to 35 percent in ideal sailing conditions. Next December Cargill will install the 320m2 kite on a handysize vessel of between 25,000 and 30,000 deadweight tonnes, which the company has on long-term charter, making it the largest vessel propelled by a kite in the world. Cargill and SkySails aim to have the system fully operational in the first quarter of 2012. Cargill is currently helping SkySails develop and test the technology and has identified a ship-owner – supportive of environmental stewardship in the industry – with whom it will partner on the project.


NEWS BULLETIN
Friday, February 25, 2011

Horizon Lines makes plea deal
over Puerto Rico violations

CHARLOTTE, NC — Horizon Lines, Inc. has confirmed that it has entered into a plea agreement with the Antitrust Division of the U.S. Department of Justice (DOJ). Under the agreement, which is subject to court approval, Horizon Lines will plead guilty to a charge of violating federal antitrust laws solely with respect to the Puerto Rico tradelane and pay a fine of $45 million over five years without interest. With the resolution of the DOJ investigation, Horizon Lines is in discussions with certain of its lenders to waive a judgment default that will arise from the plea agreement and to provide financial covenant relief as the company seeks new long-term financing. Under terms of the plea agreement, which is subject to court approval, Horizon Lines will plead guilty to a charge of violating section 1 of the Sherman Act with respect to the Puerto Rico tradelane between May 2002 and April 2008 and pay a fine of $45 million. The fine is payable over a five-year period as follows: $1 million within 30 days after imposition of the sentence by the court, $1 million on the first anniversary thereafter, $3 million on the second anniversary, $5 million on the third anniversary, $15 million on the fourth anniversary, and $20 million on the fifth anniversary. The plea agreement provides that Horizon Lines will not face additional charges relating to the Puerto Rico tradelane. The DOJ also agreed that the company will not face any charges in connection with the DOJ's investigation into the Alaska trade, and indicated that the company is not a subject or target of any investigation by the DOJ into the Hawaii and Guam trades. Additionally, the DOJ has agreed that it will not bring criminal charges against any current director or officer, although this agreement does not extend to the company's current Chief Executive Officer or to the company's current Chief Operating Officer.


Port of Bellingham seeking
public input on access plan

BELLINGHAM — Community members are encouraged to take part in a public hearing about the Port of Bellingham’s Comprehensive Park, Recreation and Public Access Plan at 3 p.m., Tuesday, March 1, during the regular Board of Commissioners meeting, 1801 Roeder Ave. This six-year plan includes information about a wide range of potential projects on port property. The plan must be updated every six years so that the port remains eligible for state boating, recreation and conservation grants offered through the Washington State Recreation and Conservation Office (RCO). People who cannot attend the hearing, but would like to submit comments can do so via an online form on the port's website, by emailing comments to planning@portofbellingham.com or by mailing comments to: Planning & Development, P.O. Box 1677, Bellingham, WA 98227-1677. Written comments must be submitted by March 4, 2011.


Boeing nets Air Force nod
for refueling tanker contract

SEATTLE — The Boeing Company has received a contract from the U.S. Air Force to build the next-generation aerial refueling tanker aircraft that will replace 179 of the service's 400 KC-135 tankers. The contract calls for Boeing to design, develop, manufacture and deliver 18 initial combat-ready tankers by 2017. The Boeing NewGen Tanker was selected after a lengthy and rigorous proposal process. The Boeing proposal was created by an integrated "One Boeing" team from various sites across the company, including employees from the Commercial Airplanes; Defense, Space & Security; and Engineering, Operations & Technology organizations. The KC-46A tankers will be built using a low-risk approach to manufacturing by a U.S. work force at existing Boeing facilities. The KC-46A tanker also will fuel the economy as it supports approximately 50,000 total U.S. jobs with Boeing and more than 800 suppliers in more than 40 states. The KC-46A Tanker is a widebody, multi-mission aircraft updated with the latest and most advanced technology and capable of meeting or exceeding the Air Force's needs for transport of fuel, cargo, passengers and patients.


AAPA letter ask Senators
to remove Port Security Grant cuts

ALEXANDRIA, VA — The American Association of Port Authorities (AAPA) has sent a letter to leaders of the Senate Appropriations/Homeland Security Subcommittee, urging them to reject the cuts made in the House’s Continuing Resolution bill regarding the Port Security Grant program and restore funding for this vital homeland security program to at least the reduced level recommended in the President’s fiscal 2012 budget. According to the letter, H.R. 1 proposes to reduce the funding for this program by two-thirds; bringing the funding level down from $300 million to $100 million. The authorized level for the program, $400 million, has been appropriated in earlier budgets.


Winter storms hit
weekly rail freight numbers

WASHINGTON, DC — The Association of American Railroads (AAR) reports a mix in weekly rail traffic as a result of winter storms in parts of the country. For the week ending Feb. 5, 2010, rail carloads were flat with U.S. railroads originating 267,682 carloads, while intermodal volume was down 1.5 percent to 198,249 trailers and containers, compared with the same week in 2010. Intermodal container volume declined 2.5 percent while trailer volume increased 4.1 percent. Eight of the 20 carload commodity groups posted increases from the comparable week in 2010 with metallic ores leading the groups with an increase of 33.5 percent. Commodity groups reporting notable declines were farm products excluding grain, down 17.9 percent; grain mill products, down 14.5 percent; coke, down 14.1 percent; and waste and nonferrous scrap, down 13.3 percent.


NEWS BULLETIN
Thursday, February 24, 2011

Port of Portland Compass honor
presented to Greenbrier executive

PORTLAND — The Port of Portland has announced that Bill Furman, president and CEO of The Greenbrier Companies is the recipient of the 2011 Compass Award. Greenbrier Companies is an Oregon headquartered, publically traded corporation. They are a market leader in intermodal rail car production and Gunderson Marine, a subsidiary, builds barges for transporting aggregate, heavy equipment and other cargo around the world. Under Mr. Furman’s leadership since 1974, The Greenbrier Companies has enjoyed tremendous success as a leading international supplier of transportation equipment and services to the railroad and marine industry, and has played a significant role in the regional economy. The company employs more than 4,600 workers worldwide. The award, presented at the port’s annual “Gateway to the Globe” meeting, recognizes the contributions of community individuals and entities that have demonstrated exceptional support for the port. Award recipients serve as civic and/or corporate role models through their outstanding contributions to the port and the communities it serves. Recipients can be recognized for overall support of the port’s strategic mission or any of port’s individual business units including, aviation, marine, environmental affairs, properties and business development.


ATA truck tonnage index
climbs during month of January

ARLINGTON, VA — The American Trucking Associations’ advance seasonally adjusted (SA) For-Hire Truck Tonnage Index increased 3.8 percent in January after rising a revised 2.5 percent in December 2010. The latest jump put the SA index at 117.1 (2000=100) in January, which was the highest level since January 2008. In December, the SA index equaled 112.7. ATA recently revised the seasonally adjusted index back five years as part of its annual revision. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 105.4 in January, down 2.9 percent from the previous month. Compared with January 2010, SA tonnage climbed eight percent, which was the largest year-over-year increase since April 2010. For all of 2010, tonnage was up 5.7 percent compared with 2009.


Navios Maritime Holdings
earns Panama Excellence award

PIRAEUS, Greece — Navios Maritime Holdings, Inc., a global, vertically integrated seaborne shipping and logistics company, has announced it has received the 2011 Panama Maritime Excellence Award from the Panama Maritime Authority. The PMA's highest award was presented to Navios Holdings Chairman and Chief Executive Officer Angeliki Frangou at the Panama Maritime Authority Gala held in Panama City, Panama on Monday, February 14. The Panama Maritime Excellence Award is the highest award given by the Panama Maritime Conference to the entity or person who has made the most positive impact on the maritime international community during recent years Criteria for selection was based on matters relating to enrollments, ship financing, innovation in the shipping sector, contributions to sustainable development in the shipping sector and quality and security.


Coast Guard posthumously awards
Meritorious Public Service medal

JUNEAU — Rear Adm. Christopher Colvin, commander of the 17th Coast Guard District, posthumously awarded Carl H. Lautenberger the Coast Guard Meritorious Public Service medal in Anchorage Wednesday. Mr. Lautenberger's wife, Fran, was presented the award during a private ceremony in recognition of Mr. Lautenberger's service for his 30-year career as a Coast Guard officer and an Environmental Protection Agency employee supporting environmental protection and response activities in Alaska. Mr. Lautenberger spent five years with the Coast Guard before joining the EPA in 1986 and participated in the response to the tank vessel EXXON VALDEZ and cargo vessel SELENDANG AYU groundings, the sinking of the motor vessel MONARCH in Cook Inlet, the Yukon River Floods of 2009 and 2006 trans-Alaskan Pipeline discharges. He worked to improve relations and coordination between the EPA, Coast Guard, state and tribal leaders. He served for more than 15 years at the EPA's Co-Chair of the Alaska Regional Response Team which lead to the development and release of the Alaska Unified Response Plan in 2010. mR. Lautenberger died in February 2010 and leaves behind a widow, Fran, and son Matt. The Coast Guard Meritorious Public Service medal is the second highest Public Service award issued by the Coast Guard.


Cargill delivers millions
to United Way charities

MINNEAPOLIS — It's not often one sees corporate executives dressed in tie dye dancing to Barbara Ann by the Beach Boys. But everything was groovy at Cargill after the company set a 1960s campaign theme in recognition of its 60th anniversary of partnering with United Way. The good vibes paid off with the company and its 48,000 North American employees contributing $13 million to United Way - $600,000 more than last year. Cargill and its employees consistently rank in the top 30 campaigns across the United States. United Way says Cargill is unique in offering the opportunity for employee donations to be matched both from corporate headquarters and the local business unit. Since 2000, the company and its employees have contributed more than $88.6 million.


NEWS BULLETIN
Tuesday, February 22, 2011

International Maritime Organization
meets to discuss piracy response

LONDON — Within the action plan to promote this year’s World Maritime Day theme – Piracy: Orchestrating the Response, a meeting took place at IMO Headquarters on February 17, 2011 between IMO Secretary-General Efthimios E. Mitropoulos and industry and seafarer representatives. All re-iterated the need for urgent and coordinated action from governments, the shipping industry and the maritime community to address the escalating crisis of kidnap and ransom of seafarers off the coast of Somalia, in the Gulf of Aden, in the Arabian Sea and in the western Indian Ocean.


Port of Vancouver, USA
postpones Port RePort event

VANCOUVER, USA — The Port of Vancouver USA is cancelling its Port RePort breakfast scheduled for tomorrow morning due to forecasted winter weather conditions and is rescheduling the event for April 6. Originally scheduled for Thursday, February 24, the annual state of the port event will now occur on Wednesday, April 6, from 7:30 - 9 a.m. at the Red Lion Hotel Vancouver at the Quay. “Our first consideration in deciding to postpone the event was the safety of our guests,” said Larry Paulson, executive director for the port. “We have good news to share about how the port is on course delivering jobs and economic benefit to this community, but with the winter weather conditions in the forecast, we decided that it would be best to postpone our annual update to the community.” Tickets purchased for tomorrow’s event through the Greater Vancouver Chamber of Commerce will automatically be transferred to April 6. Those ticket holders who are not able to attend the April 6 event are asked to contact the Chamber at 360-694-2588 to request a refund.


Maersk Line plans shakeup
of Asia, North Europe network

COPENHAGEN — Starting April 2011 Maersk Line's Asia - North Europe network service will undergo major changes, to be in place by June 2011. The network will center on daily calls at some of the major ports and markets in the trade, namely daily departures from Ningbo, Shanghai, Yantian in China and Tanjung Pelepas - Malaysia into Felixstowe - UK, Rotterdam - Holland and Bremerhaven - Germany. The first westbound change to the new network will start with Maersk's AE10 service from Ningbo April 7, 2011, continuing into Shanghai, Yantian and Tanjung Pelepas. The carrier's other strings will also follow a similar rotation through Asia, with direct calls included to Japanese and Korean ports and Xiamen, Hong Kong, Nansha. Maersk's North Europe rotation will serve Felixstowe, Rotterdam and Bremerhaven more frequently. The line will also continue to offer direct calls to Hamburg, Germany; Le Havre, France; Zeebrugge and Antwerp, Belgium; Gdansk, Poland; Aarhus, Denmark and Gothenburg - Sweden. Eastbound changes start from Gdansk on May 13, 2011 proceeding through Northern European ports and into South China.


Corps set to close
small Chittenden lock

SEATTLE — The small lock at the Hiram M. Chittenden Locks will close its gates to marine traffic and be drained for 12 days starting at 11 a.m. March 7 through 5 p.m. March 18. The closure will allow crews to conduct annual maintenance. The large lock will continue to operate 24 hours a day/seven days a week. Lock wall staff will get the commercial traffic through as quickly as possible. All pleasure boats will be using the large lock during this time. Mariners may experience some delay, depending upon how heavy the demand for passage becomes. Boaters should be prepared to use the large lock with appropriate equipment and crew. Requirements in the large lock include long lines and fenders on board the boats. The small lock is capable of handling vessels up to 25 feet wide and 100 feet long while the large lock can be configured to handle vessels as large as 760 feet by 80 feet. Most of the equipment at the locks is 95 years old. The maintenance program gives staff the chance to dry out the chambers for a thorough inspection, make any necessary repairs and paint the walls. This annual routine maintenance ensures the chambers will continue to safely operate.


Trucking association backs
hand-held mobile phone ban

ARLINGTON, VA — The American Trucking Associations (ATA) has announced its support of the Federal Motor Carrier Safety Administration’s proposed prohibition on the use of hand-held mobile phones, though it urged the agency to allow the use of hands free devices, citing agency research demonstrating the net safety benefits of such devices. To this end, ATA has supported laws and regulations banning hand-held phone use for all motorists at the state and Federal levels. ATA reiterated this position in comments filed Feb. 22 on FMCSA’s proposed ban for truck drivers. Last year, ATA supported DOT’s ban on texting by drivers commercial vehicles while their vehicles are in motion. However, while ATA agreed with FMCSA that “drivers should be prohibited from dialing a telephone number while driving,” it urged the agency not to limit drivers from pushing “a limited number of buttons in order to initiate a hands-free call.” ATA also objected to the proposed prohibition on reaching for a mobile phone while driving. Doing so, ATA argued, would prevent drivers from initiating hands-free calls which, as the agency’s research demonstrates, can have a net safety benefit. Further, ATA claimed, it is inconsistent to permit drivers to reach for other objects (e.g., a C.B., a radio dial) but prohibit reaching for a cell phone.


NEWS BULLETIN
Tuesday, February 22, 2011

Port Metro Vancouver joining CP
in new collaboration agreement

VANCOUVER, BC — North American railroad Canadian Pacific (CP) and Port Metro Vancouver (PMV) have announced a collaboration agreement to improve productivity and performance through Canada's Pacific Gateway. The port and CP believe that greater collaboration and accountability among supply chain partners is the key to more efficient and reliable trade through the Gateway. This collaboration agreement sets the framework for the port, CP and port stakeholders to develop mechanisms to define, measure, monitor and evaluate the performance of each participant at the port against established benchmarks. It also establishes processes to proactively communicate on service-related matters and resolve disputes between CP, the port and port supply chain participants on a commercial basis. This is the fourth collaboration agreement announced by Canadian Pacific in the past 12 months. Forty percent of all the freight traffic moved by Canadian Pacific passes through Port Metro Vancouver.


Maersk Line eyes orders
for up to 30 new container ships

COPENHAGEN — Scheduled for delivery between 2013 and 2015, Maersk Line has signed a contract with Korea’s Daewoo Shipbuilding & Marine Engineering Co., Ltd. to build 10 of the world’s largest and most efficient vessels, with an option for an additional 20 vessels. Called the ‘Triple-E’ class for the three main purposes behind their creation — Economy of scale, Energy efficient and Environmentally improved — these new container vessels will surpass the current industry records for fuel efficiency and CO2 emissions per container moved held by the Emma Mærsk class vessels. Four-hundred meters long, 59 meters wide and 73 metres high, the Triple-E is the largest vessel of any type on the water today. Its 18,000 TEU (twenty-foot container) capacity is 16 percent greater (2,500 containers) than today’s largest container vessel, EMMA MAERSK. The Triple-E will produce 20 percent less CO2 per container moved compared to EMMA MAERSK and 50 percent less than the industry average on the Asia-Europe trade lane. In addition, it will consume approximately 35 percent less fuel per container than the 13,100 TEU vessels being delivered to other container shipping lines in the next few years.


BNSF Railway spending
$3.5 billion on capital program

FORT WORTH, TX — BNSF Railway Company (BNSF) has announced a planned 2011 capital commitment program of $3.5 billion. The largest component of the capital plan is spending $2 billion on BNSF's core network and related assets. BNSF also plans to spend about $450 million to acquire 227 locomotives and approximately $350 million on freight car and other equipment acquisitions. The program also includes about $300 million for federally mandated positive train control (PTC) and $300 million for terminal, line and intermodal expansion and efficiency projects. BNSF's expansion and efficiency projects will be primarily focused on the mid-continent and coal routes to improve velocity and throughput capacity.


Carriers plan to offer
new Asia/South American run

TOKYO — Nippon Yusen Kaisha (NYK), Hyundai Merchant Marine (HMM), Kawasaki Kisen Kaisha (“K” Line), and Pacific International Lines (Pte) Ltd. (PIL) have announced the launch of a new biweekly service (NHX-2) from Asia to the east coast of South America (ECSA). This new service will be in addition to the current New Horizon Express (NHX-1) service currently offered by the four lines. Commencing in March, NHX-2 will enhance the carriers' current service to the growing South American market with direct coverage to Vitoria, Brazil, as well as a faster transit time to Rio de Janeiro. Meanwhile, the current NHX service will introduce a call to Pusan from the middle of March, allowing NHX partners to offer customers a nonstop express between Korea and the ECSA.


Hamburg Sud christens
new 7,100 teu container ship

HAMBURG — On Monday, February 21, 2011, as part of a customer event, Hamburg Süd christened the SANTA ISABEL in Singapore. The vessel is the second of ten identical container ships with a capacity of 7,100 TEU each. This makes them not only the largest ships ever built for Hamburg Süd, but also, with their 1,600 reefer plugs apiece, the ships with the biggest reefer capacity currently available worldwide. Sponsor of the SANTA ISABEL, which is named after a successful training ship of the shipping group from the 1950s, was Bettina Schacht, wife of Otto Schacht, senior vice president Global Seafreight, Kühne + Nagel. Since its delivery at Daewoo Shipbuilding & Marine Engineering Co. Ltd. (DSME) in Korea in December 2010, the SANTA ISABEL has been deployed in Hamburg Süd’s service between Asia and South Africa/South America East Coast (New Good Hope Express).


NEWS BULLETIN
Monday, February 21, 2011

Third phase of cleanup project
set to begin at Port of Anacortes

ANACORTES — The Port of Anacortes has kicked off the third and final phase of an extensive environmental cleanup project on the Anacortes waterfront. In partnership with the Department of Ecology and Kimberly-Clark, work at the former Scott Paper Mill site began back in June of 2009, with the Phase 1 and 2 elements focusing on the removal of debris and sediments that contain contaminants from historical wood and paper mills, which operated at the site until the 1970’s. Over 140,000 cubic yards of material was removed from the upland and marine areas of the site, and replaced with clean material. The marine work included removal of creosoted piling and wood debris from the intertidal and shoreline areas of the Seafarers’ Memorial Park, removal of the deteriorating wood breakwater, construction of two new rock wave attenuators, and the replacement of the park’s small craft facility. With the environmental cleanup activities now complete, the Phase 3 upland restoration is underway. The restoration work includes the replacement of the shoreline esplanade, including sidewalks, lighting, picnic tables, benches, interpretive signs, and landscaping. Pavement and landscape restoration for all disturbed areas will also be accomplished, as well as the rehabilitation of the existing park building which was earlier removed from the site to allow for the soil remediation work to be completed. The building had been stored on an adjacent site since the fall of 2009, and on February 10 was returned to the site and reinstalled on a new concrete slab foundation. Contracts for the Phase 3 restoration work were recently awarded to Kreider Construction of Bow, WA who will be focusing on the Park building rehabilitation, and Strider Construction Co., Inc. of Bellingham, WA who will complete the surrounding site restoration work. Restoration work is expected to last through April 30, 2011. A re-dedication ceremony of the Seafarers’ Memorial Park is planned for May 20, 2011 to celebrate the re-opening of the park as well as the completion of the cleanup of the former Scott Paper Mill site.


Washington passenger ferries
sold for service in Tanzania

SEATTLE — The passenger-only ferries, SKAGIT and KALAMA, will soon depart for Tanzania. Only, this time they’ll be the passengers. The Washington State Department of Transportation (WSDOT) sold the two ferries to Scope Community Consultants Ltd of Port Coquitlam, B.C., for $400,000. They’ll be transported by cargo ship to Tanzania, where they’ll provide ferry service between the mainland and Zanzibar. The ferries, built in 1989, have been docked and inactive since September 2009. The state Legislature directed WSDOT to end its passenger-only service in 2006.


OOCL to join CMA CGM
in India, Pakistan, Europe run

HONG KONG — Orient Overseas Container Line (OOCL) has announce that it has come into an agreement with CMA CGM to join its India Pakistan Europe service (EPIC) by contributing one ship out of eight ships as from April 1, 2011. OOCL will market the service as India Pakistan Europe service (IPE). The current service of CMA CGM will be upgraded and OOCL will be able to provide slots in the market from March 1, 2011. The port rotation of the service is: Jebel Ali > Port Qasim > Nava Sheva > Mundra > Jeddah > Port Said > Malta > Tangiers > Southampton > Rotterdam > Hamburg > Antwerp > Le Havre > Port Said > Khor Fakkan > Jebel Ali, with a round voyage time of 56 days.


Commerce Department report
shows US exports on rise

WASHINGTON, DC — The December 2010 U.S. International Trade in Goods and Services report by the Commerce Department’s U.S. Census Bureau and the U.S. Bureau of Economic Analysis showed that U.S. exports of goods and services in December increased 1.8 percent from November to $163 billion. U.S. imports of goods and services increased 2.6 percent to $203.5 billion, with the overall trade deficit growing by 5.9 percent in December to $40.6 billion. After dropping 14.6 percent in 2009, exports grew 16.6 percent in 2010, compared with an average annual rise of 11.2 percent during 2002-2008. Exports of goods and services in 2010 reached $1.83 trillion, the second highest annual total on record and the largest year-to-year percent change in over 20 years. In 2010, exports contributed to nearly half of the 2.9 percentage point growth in real GDP.


Ribbon cutting marks opening
of West Coast ship recycler

WASHINGTON, DC — U.S. Maritime Administrator David Matsuda joined California state and local officials Feb. 18, in a ribbon-cutting ceremony officially opening the first ship recycling facility on the West Coast. At its peak, Allied Defense Recycling (ADR) expects to bring more than 100 jobs to the Vallejo area. Prior to the creation of the new facility, obsolete ships were cleaned before removal from the Bay Area and then towed 5,000 miles through the Panama Canal to MARAD-approved recycling facilities located along the Gulf of Mexico or the Atlantic coast. Allied Defense Recycling, using the former Mare Island Naval Shipyard, will both remove marine growth on their dry dock and recycle the ships, which will generally result in decreased recycling costs and reduced delays associated with the process of cleaning and recycling ships in separate facilities. Most of the Mare Island complex has been shut down since the United States Navy left in 1996. In 2009, ADR received approval to open a ship dismantling and repair service on the site. Since receiving the contracts from MARAD, the company has hired 50 people, many of which are former base employees.


NEWS BULLETIN
Friday, February 18, 2011

Judge's ruling paves way
for Everett Marina development

EVERETT — On Feb. 16, 2011, a Chicago federal court judge accepted an agreement between the Port of Everett and the Everett Maritime Bankruptcy Trustee to dismiss the remaining legal claims against the North Marina property. The settlement agreement, which is subject to a 30-day appeal period, was the last legal hurdle encumbering the port’s 65-acre mixed-use parcel as a result of the Everett Maritime’s bankruptcy in 2009. “After the appeal period lapses, we will have no remaining claims against our property, and we will have full control of the property and the conference center,” Executive Director John Mohr said.


Box numbers continue to rise
at Port of Tacoma terminals

TACOMA — The Port of Tacoma reports its container volumes for January continued to improve, showing a 13 percent increase year-over-year. International containers were up 18 percent, while domestic containers increased by about five percent. The port’s international and domestic intermodal volumes both saw increases in January. Overall, the port’s intermodal rail lifts were up by 12 percent. “These are encouraging numbers, and help us to be more optimistic about the year ahead,” said Don Esterbrook, the port’s chief commercial officer. “I am confident that we are headed in the right direction.” Additional port cargo statistics are available at: http://www.portoftacoma.com/Page.aspx?nid=155


Port of Seattle taps Wen
as business development boss

SEATTLE — The Port of Seattle welcomes Mark Wen as its new Inland Cargo and Business Development manager. Mr. Wen recently started this new position tasked with building relationships across the inland Northwest, and boosting Washington exports, especially agriculture products destined around the world. He comes to the Port of Seattle with 20 years of experience in the import/export business and international business development in Eastern Washington, including managing international business development for Key Tronic Corporation in Spokane. Mr. Wen received his MBA from Gonzaga University and also managed international marketing and trade relations for the port’s Department of Economic and Trade Development from 2007 to 2010. According to the Washington State Department of Agriculture, Washington has a $38 billion food and agriculture industry that contributes 12 percent of the state’s GDP and employs more than 160,000 people. Nearly $15 billion in food and agriculture products are exported through Washington Ports annually.


Weekly rail freight totals
remain on positive side

WASHINGTON, DC — The Association of American Railroads (AAR) reports that weekly rail traffic was up over 2010 levels for the week ending Jan. 29, 2011, with U.S. railroads originating 291,147 carloads, up 4.7 percent compared with the same week last year. Intermodal volume for the week totaled 222,742 trailers and containers, up 9.2 percent compared with the same week in 2010, with container volume up 10.1 percent and trailer volume up 4.4 percent. Fourteen of the 20 carload commodity groups saw increases from the comparable week in 2010. Commodities that posted significant carload gains included: farm products excluding grain, up 37.2 percent; metallic ores, up 17.7 percent; metals and products, up 13.5 percent; petroleum products, up 12.7 percent; and pulp, paper and allied products, up 11.4 percent. Commodity groups reporting notable declines were waste and nonferrous scrap, down 11.6 percent, and nonmetallic minerals, down 10.4 percent.


Washington governor pleased with
Coast Guard funding of barge cleanup

HONG KONG — Wasington Gov. Chris Gregoire has issued the following statement on the announcement by U.S. Coast Guard Commandant Adm. Robert Papp that funds from the federal Oil Spill Liability Trust Fund will be used to pay for the removal of the DAVY CROCKETT barge, which has been leaking oil in the Columbia River: “I’m pleased by Coast Guard Commandant Papp’s decision to use the Oil Spill Liability Trust Fund to remove and dismantle the derelict DAVY CROCKETT barge. These federal funds are only used to respond to or clean up pollution. This decision demonstrates a high level of support for the partnership formed by the Coast Guard, Washington Department of Ecology and Oregon Department of Environmental Quality in responding to this serious pollution threat on the Columbia River. “The issue remains of how we improve the monitoring and management of large derelict vessels so that we avoid these types of costly and intensive response efforts in the future. I pledge to work with our partners at the local, state, federal, industry and advocacy level to develop long-term solutions.”


NEWS BULLETIN
Thursday, February 17, 2011

FMC Commissioners vote
to cut regulatory costs

WASHINGTON, DC — The Federal Maritime Commission has taken several steps to reduce regulatory burdens and bring cost savings and flexibility to the shipping industry and the customers they serve:
(1) Lifting rate-tariff publication requirements for Non-Vessel-Operating Common Carriers: The commission voted 3-1 to issue a final rule that will relieve more than 3,300 licensed Non-Vessel-Operating Common Carriers (NVOCCs) from the costs and burdens of publishing in tariffs the rates they charge for cargo shipments. The Shipping Act gives the commission authority to grant exemptions from its requirements if doing so will not result in substantial reduction in competition or detriment to commerce. The final rule will be issued by February 23, 2011, and NVOCCs who follow its conditions will be relieved of rate publication requirements 45 days after the rule is published in the Federal Register. According to comments filed with the commission, this action could save each of these businesses up to $200,000 per year.


Bremerton Port Commission meetings
headed back to administration offices

BREMERTON — The Port of Bremerton reports commission meetings are moving back to the port’s Administrative Offices at Bremerton National Airport on Feb. 22. The meetings have been held in the Norm Dicks Government Center for approximately the last two years. The commission had met at the administrative offices for many years prior to moving the meetings to downtown Bremerton. A recently remodeled meeting room at the port’s offices, 8850 SW State Highway 3 in Bremerton, will be used for commission meetings and will also be available for use by the public. The meeting room also has the capability for meetings to be recorded and televised on BKAT and also shown on the port’s website, www.portofbremerton.org. The port commissioners had also received comments that free parking for meetings at the Norm Dicks Government Center was difficult to find. There is ample free parking at the airport/administration location. Port commission meetings will still be held on the same schedule: Second Tuesday of the month, study session at 8:30 a.m., Regular meeting at 10 a.m. Fourth Tuesday of the month, regular meeting at 6 p.m. When commissioners choose to add an additional meeting, advance notice is given on the port’s website and to all area newspapers. The agendas for all regular meetings are available at least 24 hours in advance to reporters and on the port’s website.


Kansas governor joins
U.S. Tanker Coalition

OLYMPIA — Washington Gov. Chris Gregoire has announced Kansas Gov. Sam Brownback will join her as co-chair of the U.S. Tanker Coalition, a bi-partisan effort led by governors from across the country who support awarding the U.S. Air Force Refueling Tanker Contract to The Boeing Company. The governors have sent a joint-letter to President Obama, urging him to instruct the Department of Defense and the Air Force to factor into the tanker evaluation process the illegal subsidies that unfairly lower the price of every airframe that Airbus sells. “We have no doubt that the Air Force is conducting a thorough analysis of the two proposals based on their technical merits and price,” the two governors wrote. “The Air Force has, however, continued to refuse to consider in its evaluation the impact of government subsidies, deemed illegal by the World Trade Organization, on the price of the EADS/Airbus tanker.” They continued, “The U.S. aerospace industry is the finest in the world and is not afraid of competition. But competition must take place on a level playing field, and right now, the field is tilted in favor of EADS/Airbus.”


Pennsylvania teams with shipyard
to build two new oil tankers

PHILADELPHIA — The Commonwealth of Pennsylvania has announced a new partnership with Aker Philadelphia Shipyard Inc. (APSI) that can preserve up to 1,000 direct jobs over the next three years by guaranteeing the construction of two new oil tankers at the Yard over the next two years. The partnership between APSI and the commonwealth follows months of bipartisan negotiations to forestall the imminent closure of the yard. The plan guarantees continued shipbuilding in Philadelphia by building two new oil tankers by 2013, by which time experts believe there will be renewed demand for Jones Act commercial vessels like those that can be built at the shipyard. For its part, the commonwealth will invest $42 million in capital funds to acquire all of the existing capital assets of the Aker Philadelphia Shipyard, which were originally purchased by APSI over the last 10 years. The City of Philadelphia also will agree to temporarily defer $8 million in tax settlement payments due from APSI. In return, APSI will commit $210 million to complete the project through private investment -- both its own equity and through private financing -- and to guarantee the completion of the 17th and 18th ships to be built in Philadelphia since 2000.


OOCL planning to add
Atlantic Gulf of Mexico run

HONG KONG — OOCL has announced a new Atlantic Gulf Mexico (AGM) Service to be operated in cooperation with CMA's Victory Bridge Service. AGM will further complement OOCL’s existing services to the South Atlantic, the Gulf and Mexican markets. Service will commence Westbound ex Antwerp on February 22 and Eastbound ex Veracruz on March 11, pending final FMC approval. Orient Overseas Container Line (OOCL) is a wholly-owned subsidiary of Hong Kong Stock Exchange listed Orient Overseas (International) Ltd. Headquartered in Hong Kong, OOCL is one of the world's leading container transport and logistics service providers, with more than 280 offices in 55 countries.


NEWS BULLETIN
Wednesday, February 16, 2011

ICTSI Oregon now operating
Port of Portland's Terminal 6

PORTLAND — ICTSI Oregon, Inc., a subsidiary of International Container Terminal Services, Inc., officially took over operation of the Port of Portland’s Terminal 6 on Saturday, Feb. 12, ushering in a new era of management at the Columbia River’s only deep draft container terminal. Under a 25-year lease to operate Terminal 6 container and breakbulk facilities, the growing global terminal operator is enacting ambitious plans to boost service for both imports and exports while leveraging intermodal rail facilities for movement of boxes to and from inland markets by train. The agreement, approved by the port commission in May 2010, will continue to position Portland as an international cargo gateway.


NOL Group reports
profits soar during 2010

SINGAPORE — NOL Group has reported net profit of US$461 million for 2010, representing a US$1.2 billion turnaround from its US$741 million loss in 2009. The container shipping and logistics company said that group revenue reached an all-time high of US$9.4 billion, up 45 percent from last year. NOL’s fourth quarter net earnings were US$177 million. That compared to a US$211 million loss in the same period a year ago. NOL reported 2010 Core EBIT (Earnings Before Interest and Taxes) of US$557 million, compared to a Core EBIT loss of US$651 million in 2009. Core EBIT in the fourth quarter was US$198 million. APL, NOL Group’s liner shipping business, reported 2010 revenue of US$8.3 billion, up 47 percent from a year ago. The shipping line attributed the increase to higher volumes of cargo transported and improved freight rates in most major trade lanes. Volume increased 24 percent from 2009 and average Revenue Per FEU (forty-foot equivalent unit) was up 22 percent to US$2,787. The average utilization rate for APL vessels in 2010 was 94 percent. APL said freight rates increased particularly in the second half of 2010 where improved Transpacific contract rates and peak season surcharges took effect.


NewLead Holdings charters
pair of products tankers

PIREAUS, Greece — NewLead Holdings Ltd. (NewLead), an international, vertically integrated shipping company, has announced that it has entered into two new long-term time charter contracts with a first-class charterer for two product tankers, the NEWLEAD COMPASS and the NEWLEAD COMPASSION, each built in 2006. The NEWLEAD COMPASS (72,934 dwt) and the NEWLEAD COMPASSION (72,782 dwt) have each been chartered-out for a five-year period. The vessels are expected to commence their charters during the second quarter of 2011. The net daily charter-out rate for each vessel will be $11,700 for the first year, $13,650 for the second, third and fourth year and $15,600 for the fifth year. In addition, during the term of the charters, Newlead will have a profit-sharing interest equal to 50 percent of the actual earnings up to $26,000 per day and 30 percent above such amount. As a result of this transaction, Newlead expects to have 73 percent of its operating days covered for 2011, 56 percent for 2012 and 46 percent for 2013.


MarAd taps three firms
to operate reserve fleet ships

WASHINGTON, DC — U.S. Transportation Secretary Ray LaHood has announced contracts totaling $77 million for three U.S. maritime firms to operate 10 National Defense Reserve Fleet ships through July 27, 2015. The contracts were awarded to Ocean Duchess Inc. of Houston, Texas for $16,618,430; Keystone Ocean Shipping of Bala Cynwyd, Pa. for $30,212,588; and Interocean American Shipping Corporation of Moorestown, N.J. for $30,533,710. These companies are responsible for maintaining the ships in good mechanical condition and ensuring crews are available for their operation when needed. Eight of the ships are reserve-status cargo ships, part of the Department of Transportation’s Ready Reserve Force, and two ships are used to assist Missile Defense Agency operations. Ready Reserve Force ships have been activated 91 times since 2002. The money was awarded to the companies which offered the best value to the government and was funded through Department of Defense funding and implemented by MARAD under the Ready Reserve Force program.


Port of Camas-Washougal
adds new boat ramp ticket machine

WASHOUGAL, WA — Boaters who launch watercraft from the Port of Camas-Washougal beginning this month will notice a new launch ramp ticket machine installed Feb. 9. The green, obelisk-shaped ticket machine may be a familiar design and color for customers of the paid parking permit machines used in downtown Vancouver and Portland. Located at the marina pay station kiosk, the machine dispenses $7.00, one-day "Pay & Display" tickets that are placed on the dashboard of each vehicle. The tickets serve as a launch ramp and parking permit, are valid until midnight of the day of purchase. The new machine was installed to meet the demand for customers using the popular launch ramp at the port. It will also reduce tampering or vandalism attempts to get at the cash previously accepted at the machine and decreases the staff time required for sorting, accounting and depositing the cash. The port office will still accept cash during regular operating hours of 8-5 p.m. Mon. - Fri.


NEWS BULLETIN
Tuesday, February 15, 2011

Port association sees ups/downs
in President's budget for 2012

ALEXANDRIA, VA — With the release of President Obama's fiscal 2012 budget, the American Association of Port Authorities (AAPA)-which represents seaports throughout the Western Hemisphere-is expressing both optimism and disappointment over various aspects of the budget pertaining to seaports and the efficient, safe and cost-effective movement of freight.


Corps' Seattle District
in line for funding in 2012 budget

SEATTLE — The President's Budget for fiscal year 2012 (FY12) includes $4.631 billion in gross discretionary funding for the Civil Works program of the U.S. Army Corps of Engineers (USACE), offset in part by a proposal to cancel $57 million of prior year funding, of which $35 million was provided through an emergency supplemental appropriation. Seattle District projects in the budget include $21 million for dams operation and maintenance, $16 million for navigation dredging, $400,000 for the Puget Sound Nearshore Restoration Program, $1 million for Mud Mountain Dam fish passage construction and $2.06 million for construction of Duwamish and Green River ecosystem restoration projects. New federal funding in the Civil Works budget consists of $3.753 billion from the general fund, $758 million from the Harbor Maintenance Trust Fund, $77 million from the Inland Waterways Trust Fund, and $43 million from Special Recreation User Fees. The FY12 Army Civil Works budget press book, including a state-by-state breakdown, is available at http://www.usace.army.mil/CECW/PID/Pages/cecwm_progdev.aspx.


President's budget holds
$101.5 million for NW Corps

PORTLAND — The President's Budget for fiscal year 2012 includes $101.5 million for U.S. Army Corps of Engineers' projects and activities in western Oregon and southwestern Washington. The Budget funds the planning, design, construction, operation and maintenance of projects, and focuses on the three main Civil Works mission areas: commercial navigation, flood and coastal storm damage reduction, and aquatic ecosystem restoration, as well as hydropower. The Budget includes $6.5 million for the Mount St. Helens long-term plan to manage sediment and maintain flood reduction benefits to the communities along the Lower Cowlitz River. Funding for the Portland District also supports further efforts to improve conditions at Columbia River dams for the benefit of migrating salmon, and floodplain reclamation and aquatic ecosystems restoration in the Lower Columbia River estuary. Funding will also support Bonneville Lock and Dam, The Dalles Lock and Dam, John Day Lock and Dam; the Willamette Valley dams of Detroit, Big Cliff, Foster, Green Peter, Cougar, Blue River, Fall Creek, Fern Ridge, Hills Creek, Lookout Point, Dexter, Cottage Grove and Dorena; the Applegate, William L. Jess (formerly Lost Creek) and Elk Creek dams in the Rogue River Basin; Willow Creek Dam; Willamette Falls Locks; navigation on the Columbia River and other Oregon coastal rivers; and maintenance work on the south jetty at the mouth of the Columbia River. The FY12 Army Civil Works budget press book, including a state-by-state breakdown, is available at http://www.usace.army.mil/CECW/PID/Pages/cecwm_progdev.aspx.


Red Arrow Logistics
earns NVOCC license

BELLEVUE, WA — Red Arrow Logistics, a logistics and transportation company serving fast growing, complex and high value supply chains, was awarded its non-vessel-operating common carrier (NVOCC) license as an ocean freight forwarder by the Federal Maritime Commission. The Federal Maritime Commission is an independent regulatory agency responsible for the regulation of ocean borne transportation in the foreign commerce of the U.S. This license enables Red Arrow Logistics to immediately provide its customers and prospective customers with ocean freight forwarding services. “We are thrilled to have our NVOCC license to expand our service offering with the same level of attention and passion we provide with all of our services,” said Liz Lasater, CEO of Red Arrow Logistics. This will enable Red Arrow Logistics to meet requests from customers to leverage business relationships into other logistics services with additional modes of transport and trade lanes.


OOCL plans to bring back
Atlantic Express Shuttle service

HONG KONG — OOCL has announced re-introduction of the Atlantic Express Shuttle (AES) with an additional port call to Hamburg. Revised rotation will be: Hamburg-Antwerp-New York-Hamburg. Service will recommence Westbound on March 13 ex Hamburg and Eastbound ex New York on March 25. Orient Overseas Container Line (OOCL) is a wholly-owned subsidiary of Hong Kong Stock Exchange listed Orient Overseas (International) Ltd. Headquartered in Hong Kong, OOCL is one of the world's leading container transport and logistics service providers, with more than 280 offices in 55 countries.


NEWS BULLETIN
Monday, February 14, 2011

No appeal from City of Portland
in River Plan/North Reach decision

PORTLAND — The City of Portland Bureau of Planning and Sustainability (BPS) reports the City of Portland will not appeal the Jan. 21, 2011, state Land Use Board of Appeals (LUBA) ruling that remanded the River Plan / North Reach back to the city. The deadline for appealing the decision was February 11. BPS says it is in the best interest of the city to move this project forward. The process of appeal is costly and time-consuming. Staff and community stakeholders have worked hard for several years to collaborate on a successful plan for the long-range health and prosperity of the working harbor. It is important to resolve the technical issue related to industrial lands in a timely manner, so the city can adopt and implement the much discussed and broadly supported River Plan. LUBA directed the city to quantify any net reduction in acres of the city's inventory of industrial lands due to the implementation of the River Plan in the North Reach. The city will do the additional analysis to calculate any net changes to the industrial land supply and determine this spring when and how to bring a revised River Plan document to City Council. In the interim, the Willamette Greenway Plan will continue to be in effect for river development.


Port Tracker report predicts
jump in import cargo volumes

WASHINGTON, DC — Import cargo volume at the nation’s major retail container ports is expected to be up 11 percent in February over the same month last year and the first half of 2011 should be up 6 percent over the same period in 2010, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates. U.S. ports handled 1.14 million Twenty-foot Equivalent Units in December, the latest month for which actual numbers are available. That was down seven percent from November as the holiday season wound down, but up five percent from December 2009. It was the 13th month in a row to show a year-over-year improvement after December 2009 broke a 28-month streak of year-over-year declines. One TEU is one 20-foot cargo container or its equivalent. January remained steady at 1.14 million TEU, a six percent increase over January 2010. February is forecast at 1.11 million TEU, up 11 percent over last year, with March at 1.16, up eight percent; April at 1.22 million TEU, up seven percent; May at 1.3 million TEU, up three percent, and June at 1.37 million TEU, up four percent. The first half of 2011 is forecast at 7.3 million TEU, up six percent from the first half of 2010. That compares with 17 percent growth in the first half of 2010 over the first half of 2009. For the full year, 2010 totaled 14.7 million TEU, a 16 percent increase over 2009. The percentages were high because 2009’s 12.7 million TEU was the lowest level seen since 2003.


Washington Governer taps O'Keefe
as Puget Sound Partnership director

OLYMPIA — Washington Gov. Chris Gregoire has announced she has appointed Gerry O’Keefe as executive director of the Puget Sound Partnership. Mr. O’Keefe is currently the interim executive director of PSP, and replaces David Dicks, who resigned in December to accept a position at the University of Washington. Mr. O’Keefe joined the Puget Sound Partnership last March as deputy director of the agency. Prior to his work at PSP, he spent more than eight years working at the Department of Ecology, capped by the establishment of the Columbia River Water Supply Program in 2007 and related water supply agreements with tribal governments in 2008. After leaving Ecology Mr. O’Keefe joined the Grant County Public Utility District as its director of natural resources, where he led a large-scale environmental mitigation program. The Puget Sound Partnership was created in 2007 to pull together citizens, governments, tribes, scientists and businesses to restore and protect Puget Sound to ensure both a thriving Puget Sound economy and a clean and healthy ecosystem.


Rand Logistics purchases
two integrated tug/barge vessels

NEW YORK — Rand Logistics, Inc. has announced that it has acquired two Jones Act compliant, self-unloading integrated tug/barge units from KK Integrated Shipping (KKIS). The acquisition was structured with $35.5 million cash paid at closing (including $31.0 million financed with third party debt), $5.1 million of junior seller paper and 1,305,963 shares of the company's common stock. Rand Logistics, Inc. is a provider of bulk freight shipping services throughout the Great Lakes region. Through its subsidiaries, the company operates a fleet of 15 vessels consisting of 12 self-unloading bulk carriers, including eight River Class vessels and one River Class integrated tug/barge unit, and three conventional bulk carriers, of which one is operated under a contract of affreightment.


Last day to register
for Maritime Commerce Club event

PORTLAND — Today is the last day to register for the Maritime Commerce Club's Winter Event 2011. the club invites you to join them for a night of great food, networking and bowling from 5:30 to 7:30 p.m. at Grand Central Restaurant & Bowling Lounge, 808 S.E. Morrison Street in Portland. Cost is $65 per person. Mark your calendars for February 17, and plan to attend this special Event. Tickets include unlimited bowling, shoe rental, dinner, and two drink tickets. There will also be a special presentation to the 2011 "Old Salt" Honoree, Larry Paulson, executive director of the Port of Vancouver, USA. Ticket price includes unlimited open-lane bowling, appetizers, buffet dinner and dessert. Attendees will also receive two drink tickets that are good for beer, wine or soft drinks. Today is the last day to submit your registration. Downloadable Registration (in a fill-in .pdf format for your convenience) is available at: http://www.pdxmex.com/media/Maritime_Commerce_Club/WinterEventFlyerRegistration.pdf


NEWS BULLETIN
Friday, February 11, 2011

Port of Grays Harbor
expanding rail capacity

ABERDEEN, WA — The Port of Grays Harbor is making strategic investments in rail and marine capacity to ensure their position in global shipping markets. Port commissioners have awarded an $11 million contract to Rognlin’s, Inc. to construct additional rail as phase two of an overall $18 million rail improvement plan to increase capacity at this deep-water shipping port. The port is adding more than 36,000 feet of rail capacity in the marine complex to accommodate growing automobile and grain export volumes. Although forest products comprise an important part of the Port of Grays Harbor cargo mix, other products like dry agricultural products and automobiles are now the volume leaders at the port. Export volumes of soybean meal and DDGs topped one million metric tons in 2010, while at the same time Grays Harbor became the west coast export hub for Chrysler automobiles, accounting for one-third of all exports through the US West Coast. The American-made products all arrive via rail to the port’s docks. Local job creation doesn’t stop at the waterfront. With the award of the contract to the apparent low bidder, Rognlin’s Inc, the project will also create local construction jobs. Rognlin’s is headquartered in Aberdeen. The Port of Grays Harbor reports it is served by the only active rail system to the coast in Oregon and Washington. A unique feature of the line is the dual access to both Union Pacific and Burlington Northern Santa Fe class one railroads. Through these connections, Grays Harbor’s shipping terminals become linked to all markets throughout North America. Operated by Puget Sound and Pacific Railroad, the Pacific Northwest Coastal Freight Corridor links AGP’s Midwest growers with their shipping facilities in Grays Harbor.


Panama Canal Authority
brings super dredger onboard

PANAMA CITY — In yet another move to procure the best equipment for the expansion project, the D'ARTAGNAN, the most powerful self-propelled heavy duty cutter suction dredger in the world, arrived at the Panama Canal January 11. Upon its arrival, the latest addition to the Panama Canal Authority’s (ACP) expansion dredging fleet then made its way to the Pacific entrance, which will ultimately link the new Pacific locks with the canal’s existing Gaillard Cut (the narrowest stretch of the Panama Canal). The D'ARTAGNAN, which is able to dredge hard rock locations that previously required drilling and blasting, will complete the dredging of the waterway’s Pacific entrance. The dredger will expand the existing Pacific entrance from 192 meters to 255 meters and deepen it to 15.5 meters below the mean water springs. The D'ARTAGNAN, which measures 123.80 meters in length, is owned by Belgian company Dredging International (part of the DEME Group).


Rail freight traffic
up during week

WASHINGTON, DC — The Association of American Railroads (AAR) reports that weekly rail traffic continues to register gains in 2011 with U.S. railroads originating 282,987 carloads, up 7.5 percent compared with the same week in 2010, for the week ending Jan. 15, 2011. Intermodal volume for the week totaled 213,486 trailers and containers, up 5.8 percent compared with the same week in 2010, with container volume up 7.2 percent, but trailer volume down 1.5 percent. Eleven of the 20 carload commodity groups increased from the comparable week in 2010. Commodities posting significant gains in loadings included: metallic ores, up 119.2 percent, and metals and products, up 17.9 percent. Commodity groups reporting double digit declines were waste and nonferrous scrap, down 20.2 percent, and primary forest products, down 15.2 percent.


World Maritime University
taps Skaanild as chairman

LONDON — The International Maritime Organization (IMO) and the World Maritime University (WMU) have announced the appointment of Torben Skaanild as the new chairman of the Executive Board of the University. Mr. Skaanild is the secretary general of BIMCO and will replace Jan Kopernicki, who is retiring. Since the World Maritime University was founded by IMO, in 1983, it has become the global center for advanced education and research for the benefit of the international maritime community, including governmental, public and commercial sectors. Mr. Skaanild has had a long and very international career within the shipping industry, having held executive positions in Canada, The Philippines, Thailand and Hong Kong, China.


Port association schedules
administration/legal issues seminar

ALEXANDRIA, VA — The biennial Port Administration and Legal Issues Seminar in San Francisco, April 13-15, sponsored by the American Association of Port Authorities (AAPA), will examine the latest trends, challenges and management strategies for port administrators, finance officers, attorneys, and real estate and risk managers. The association's 2½-day program will address current developments in port contracts and leasing; lease security and certificates of insurance; the Shipping Act and Federal Maritime Commission regulation; port insurance and risk management strategies; a wide range of employment issues; legal ethics, public records, recordkeeping, and electronically-stored information; and minimizing/avoiding liability in port construction projects. It will also include an in-depth discussion of public financing and the issuance of bonds. More information about AAPA's Port Administration and Legal Issues Seminar is available at http://www.appa-ports.org/ (click on the "Programs & Events" tab) or by calling AAPA's Ed O'Connell at (703) 684-5700.


NEWS BULLETIN
Thursday, February 10, 2011

Port of Everett eyes
deal with bottling company

EVERETT — The Port of Everett is working in collaboration with the City of Everett and Snohomish County to bring additional job opportunities to the region. On February 9, 2011, Snohomish County Executive Aaron Reardon announced that Evergreen Bottling Company would be bringing a new water bottling plant to Everett, with specific interest in the port's Riverside Business Park. It is expected the company would generate up to 15 million bottles of water per month for shipment overseas. The new plant is expected to produce up to 50 million bottles per month. According to the company's president, the new venture would create up to 100 family-wage jobs for the area. In addition, the business is looking to export the bottled water through the port's international shipping terminals, which will also generate additional trade-related jobs. The details have yet to be formalized.


General Maritime completes
sale of tanker vessels

NEW YORK — General Maritime Corporation has announced that it has completed the sale of the GENMAR PRINCESS, a 1991-built Aframax tanker, to an
unaffiliated third party, generating net proceeds of $7.5 million. The company also announced it has entered into an agreement to sell the GENMAR GULF, a 1991-built Suezmax tanker, in a separate transaction with another unaffiliated third party. The sale of the GENMAR GULF is expected to generate net proceeds of $11.0 million and close by February 28, 2011. The company intends to use net proceeds from the sale of both vessels, which are expected to total approximately $18.5 million, to pay down debt under the company's $750 million revolving credit facility. The company also announced it has completed the previously announced sale of the last of three product tankers, the 2005-built STENA CONCEPT, to affiliates of Northern Shipping Fund Management Bermuda, Ltd., generating net proceeds of $21.0 million. General Maritime received total net proceeds of $61.7 million from the sale and leaseback of all three product tankers, the STENA CONCEPT, the STENA CONTEST and the GENMAR CONCORD, a portion of which was used to repay the Company's $22.8 million bridge loan, plus $0.1 million in fees and accrued and unpaid interest, on February 8, 2011. As a result of the repayment of the bridge loan, the GENMAR VISION, a 2001-built VLCC, was released from its mortgage.


Port association presents
pair of cruise awards

ALEXANDRIA, VA — The American Association of Port Authorities (AAPA), which represents seaports throughout the Western Hemisphere, at its annual Cruise Seminar in Miami presented the association's prestigious Cruise Award to Betty MacMillan, manager of cruise development for the Saint John (New Brunswick) Port Authority, and to Terry Thornton, senior vice president for itineraries and revenue planning for Carnival Cruise Lines. Since 2006, AAPA has periodically presented its Cruise Award in recognition of an individual or individuals whose outstanding work or service has had a positive impact on the relationship between the cruise port and the cruise industry in the Western Hemisphere. Previous awardees include Carnival Corporation's founder and former chairman, the late Ted Arison (2006), the Québec Port Authority's former president and chief executive, Ross Gaudreault (2008), and Tom Dow, vice president of public affairs for Carnival Corporation & PLC (2009).


OOCL sees success in
container pickup scheme

HONG KONG — To enhance customers’ convenience, OOCL has introduced Empty Pickup Appointment (EPA) service since October 2010 in Hong Kong. Customers can make appointments prior to empty container pickup by calling a hotline number. They can also amend or cancel their appointments and make changes on pickup time. EPA service ensures customers can pick up empty containers as per appointment at designated locations. This saves time for customers by avoiding unnecessary transit between depots. Based on the successful implementation of the service and positive responses from customers in Hong Kong, OOCL is studying to extend EPA service to Shenzhen. Further launch date and details are to be announced.


NYK Group completes
winter safety campaign

TOKYO — The NYK Group has completed its winter safety campaign, which was titled “Sail on Safety” and ran from December 1, 2010, through January 31, 2011. NYK carries out the campaign every year as part of its proactive measures to prevent accidents that are more likely to occur due to the turbulent seas which are more common during the winter months. The NYK Group has continued to focus on safe ship operations and environmental activities by sharing with related parties throughout the year the understanding of risks to vessels. However, the possibility of marine troubles increases in turbulent seas in winter, so the safety campaign has been held every winter to warn related parties of risks. During this campaign, 345 NYK Group members, including NYK executives, visited 207 vessels to deepen communication between onboard crew and onshore staff by sharing current information about the vessel and exchanging opinions about safe ship operations. During the visit, crew members and ship operators discussed case studies that included how to avoid unsafe conditions that can lead to an accident. The visits also promote mutual understanding between onboard crew and onshore staff, and bring people together in a united effort to increase safety awareness.


NEWS BULLETIN
Wednesday, February 9, 2011

Ports of Seattle, Moses Lake
eye economic development deal

SEATTLE — The Ports of Moses Lake and Seattle have met to discover possible partnerships in economic development for King and Grant Counties. Commissioners and executive staff from Port of Moses Lake joined their Seattle counterparts for a roundtable that highlighted recent successes for both ports and ways the two agencies could work together to promote economic growth across the state. The Port of Seattle had a record cargo year in 2010 and is beginning to see signs of growth in all of its business divisions. Like Seattle, Port of Moses Lake operates an airport, the Grant County International Airport, and has a thriving industrial park within the agency’s Foreign Trade Zone (FTZ). The port is also working with WSDOT to study and fund the North Columbia Basin Railroad Project, which would increase access to rail for businesses in surrounding areas. In addition, BMW recently broke ground on a facility shared with SGL, manufacturer of automotive carbon fibers. The plant is expected to create 200 jobs and is sparking economic renewal in the region. The Port of Seattle has recently increased efforts to work with Eastern Washington businesses, including agriculture exporters, by hiring Mark Wen as manager for inland cargo and business development. Mr. Wen has extensive experience in Eastern Washington, including managing international business development for Key Tronic Corporation in Spokane.


JetBlue Airways adding
Portland to Santiago flights

PORTLAND — JetBlue Airways has announced a new nonstop destination – Portland, Ore. and Santiago, Dominican Republic. Seasonal service to Portland International Airport (PDX) will begin May 26, 2011. With this route addition, JetBlue will serve a total of 42 nonstop destinations, more than double the next largest carrier. Service to this new destination will be operated by JetBlue’s Airbus A320.


Freight transportation index
up during month of December

WASHINGTON, DC — The Freight Transportation Services Index (TSI) rose 1.5 percent in December from its November level, rising after one monthly decline, the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS) reports. BTS, a part of the Research and Innovative Technology Administration, reported that the Freight TSI rose 6.9 percent over the last 19 months, starting in June 2009, after declining 15.3 percent in the previous 10 months beginning in August 2008. The index has increased in 14 of the last 19 months. In 2010, the index increased 0.4 percent. With next month's release, BTS will conduct a comprehensive revision, delayed one month from the previously announced revision. The revision will result in changes to the 2010 numbers, especially for those months that have not undergone the monthly revision and are currently classified as preliminary. The Freight TSI measures the month-to-month changes in freight shipments in ton-miles, which are then combined into one index. The index measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight. The December Freight TSI of 100.0 is a 6.9 percent increase from the recent low of 93.5 reached in May 2009. In May 2009, the index was at its lowest level since June 1997. The December Freight TSI is down 11.4 percent from its historic peak of 112.9 reached in May 2006. Although the index rose 0.4 percent from December 2009 to December 2010, it remains below the level of every other December since 2001 when it was 97.4. January 2010 was the first month since July 2008 in which the Freight TSI exceeded the level of the same month of the previous year. The index has exceeded the previous year's level every month since January but still remains below the level of years before the most recent year. The freight index is down 10.1 percent in the five years from December 2005. The index is up 2.1 percent in the 10 years from December 2000 despite recent declines. The TSI is a seasonally adjusted index that measures changes from the monthly average of the base year of 2000. It includes historic data from 1990 to the present. Release of the January index is scheduled for March 9.


Crowley taps Rich Habib
as Titan Salvage vice president

POMPANO BEACH, FL — Capt. Rich Habib has been appointed vice president of TITAN Salvage with responsibility for the company's overall performance, including operations, administration, finance and commercial activities. He is domiciled at TITAN's headquarters in Pompano Beach, Fla., and reports to Todd Busch, Crowley Maritime Corporation's senior vice president and general manager of technical services. TITAN is a Crowley subsidiary. Dan Schwall, who previously served as TITAN's vice president, has accepted a new challenge leading the business development, sales and marketing efforts of Crowley's new solutions group, which brings together a host of disciplines, including marine contract services, engineering, naval architecture, project management and logistics, to deliver customized solutions for customers. Capt. Habib is a 1977 graduate of the U.S. Coast Guard Academy. He served in various posts including commanding officer of a patrol boat and rescue station. Exchanged to the U.S. Navy, he served a tour aboard a frigate. After leaving the Coast Guard in 1984, he worked in the oil field aboard supply boats and later specialized in the international tramp heavy lift trade aboard Dock Express and Van Ommeren vessels where he sailed as master and was a project manager. He holds a BS degree in physical oceanography and an unlimited master's license. He is a regular member of the Council of American Master Mariners.


Public hearings cancelled
for New Jersey pipeline project

WASHINGTON, DC — The US Maritime Administration has announced public hearings for the Liberty Natural Gas Deepwater port facility have been cancelled. The agency reports it has received notification from the Governor of New Jersey disapproving the project. The Liberty Natural Gas project is designed to bring natural gas directly into New Jersey’s energy markets. Liberty’s natural gas delivery system consists of submerged buoys connected to a buried, undersea pipeline and a short, also buried, onshore pipeline.


NEWS BULLETIN
Tuesday, February 8, 2011

Lloyd's List numbers show
decline in shipping casualties

LONDON — The Lloyd’s List Intelligence Casualty service shows that there was a large fall in shipping casualties last year, with overall global incidents down by eight percent and worldwide ship sinking incidents falling by more than 30 percent as compared with 2009 figures. Unprofitable shipping rates, more stringent Port State Control inspections and fewer severe weather events are, it seems, likely factors behind declines in the number of ship casualties say analysts at the service.


Port of Grays Harbor delivers
record cargo numbers in 2010

ABERDEEN, WA — Record cargo shipments, over $60 million in private investment and increasing waterfront jobs; these were the measurements of success for the Port of Grays Harbor in 2010. As export volumes of dry bulk agricultural products like soybean meal and distillers dried grains (DDGs) topped one million metric tons, the Port of Grays Harbor also became a major player in the US auto export market, handling one-third of all automobiles exported through US West Coast ports. Combined with the return of log exports and additional over-high and over-wide cargoes, the Port of Grays Harbor on Washington’s Pacific Coast celebrated a record year. To put this in perspective, five years ago a total of 19 vessels called Grays Harbor, moving just over 276,000 metric tons of cargo. In 2010, 106 vessels transported more than 1.5 million metric tons of cargoes and 21,000 autos. Grays Harbor’s growth spurt is not by accident. Located one and half hours from open sea, the Port of Grays Harbor has developed strategic partnerships that resulted in more than $150 million in private investment over the past five years. With access to both Class 1 railroads, Grays Harbor’s location provided a competitive advantage to those who developed facilities. Ag Processing Inc (AGP), the primary shipper of soybean meal and DDGs, began the expansion of their Terminal 2 facility, with plans to more than triple their export volumes. Westway Terminal Company completed their $20 million liquid bulk storage facility at Terminal 1 in early 2010 adjacent to the Imperium Grays Harbor biodiesel plant. Willis Enterprises, a forest products company specializing in barge shipments of wood chips, became fully operational at Port of Grays Harbor Terminal 3. Pasha Automotive Services processed 21,000 vehicles at their Terminal 4 facility. Working to increase capacity for all shippers, the port completed a widening project on the freight corridor serving the marine terminal area as well as major upgrades to Marine Terminals 1 & 3 in 2010. Currently, Grays Harbor is working on an $18 million rail improvement project to increase storage and efficiency within the port’s marine terminal complex.


Port of Seattle backs
city's pact with WSDOT

SEATTLE — The Port of Seattle has announced it supports and appreciates the Seattle City Council’s vote approving the agreements between WSDOT and the City of Seattle. “Tens of thousands of jobs generated by port activities depend on a transportation system that moves goods and people efficiently,” said Commission President Bill Bryant. “Today (Feb. 7), the city council took action to protect those jobs.” In 2009, the port commission voted unanimously to invest up to $300 million in the AWV and Seawall Replacement Program, a partnership of the port, Seattle, King County and Washington State. The port reports that the current design, including the deep-bore tunnel, is the best option for the region’s economy, because the existing structure can remain and traffic will continue to flow until the new project is completed – so that the maritime industry and all businesses that depend on the port can keep working.


MOL changing face of
refrigerated cargo sales team

ROTTERDAM — MOL has announced another step in its expanded commitment to refrigerated cargo service capabilities with the restructuring of its refrigerated sales and trade team. MOL’s three US Sales Regions now have assigned sales managers whose primary focus will be developing its refrigerated market initiatives. The appointments are: Mark McQueen, regional manager, reefer sales, Atlantic Region; Larry Flading, regional manager, reefer sales, Central Region; and Pat Ryan, regional manager, reefer sales, Pacific Region. In addition to the sales appointments, Lincoln Pei has been appointed to director of refrigerated services. Mr. Pei reports to Tsunemichi Mukai, vice president, Transpacific, Caribbean and Latin trade for MOL Liner.


Trucking association backs
President's plan to rebuild

ARLINGTON, VA — American Trucking Associations President and CEO Bill Graves has applauded President Obama for his commitment to rebuilding and renewing the country’s infrastructure, but called on his administration to live up to that commitment by proposing a robust surface transportation program with a strong focus on highways. “We agree with President Obama when he said America is operating with ‘outdated and inadequate infrastructure,’ and we appreciate his commitment to provide the United States with the ‘fastest most reliable’ transportation system in the world,” Mr. Graves said following President Obama’s Feb. 7 address to the U.S. Chamber of Commerce. “However, we urge the President and his administration to live up to that commitment with a strong focus on traditional highway and bridge projects as they work with Congress to craft the long overdue surface transportation reauthorization. “The U.S. Department of Transportation said late last month that, by any measure, trucks haul the vast majority of the nation’s freight, and America’s trucking industry carries these goods safely, efficiently and faster than any of its competitors,” Graves said. “Investing in the nation’s roads and bridges is among the most efficient ways to create jobs and insure the continued competiveness for U.S. businesses.”


NEWS BULLETIN
Monday, February 7, 2011

Oregon land use board
sends river plan back to Portland

PORTLAND — The City of Portland Bureau of Planning and Sustainability reports that the River Plan / North Reach was adopted by Portland City Council in April 2010. It was subsequently appealed by Gunderson, LLC; Schnitzer Steel Industries; and the Working Waterfront Coalition, an industry group that represents North Reach businesses. On Friday, Jan. 21, 2011, the Oregon Land Use Board of Appeals (LUBA) remanded the plan back to the City of Portland.


Waterways association reports
Columbia lock projects going well

PORTLAND — The Pacific Northwest Waterways Association (PNWA) has been closely monitoring progress of the Columbia Snake River System’s (CSRS) extended lock outage. The 14-week planned closure began on December 10, 2010 and includes gate replacements at The Dalles, John Day and Lower Monumental navigation locks. Routine maintenance of all eight CSRS locks, which are maintained by the U.S. Army Corps of Engineers, will also occur during the closure. “We are pleased to report that there has been consistent good news from the Corps,” stated Glenn Vanselow, PNWA executive director. “As we near the half way point of the closure, the projects are well on their way to completion.” The Corps has announced that they are running very close to schedule, with most locks reopening by March 13. The Dalles is scheduled to reopen on March 23, at which time the entire CSRS will be up and running. Commerce will again be flowing up and down the inland system from the Portland/Vancouver area all the way to Lewiston, ID. The CSRS is a vital transportation link for the states of Idaho, Montana, Oregon and Washington. The economies of these four states rely heavily on the commerce that flows up and down this system. The CSRS is the #1 U.S. wheat export gateway, #1 U.S. barley export gateway, #1 West Coast wood export gateway, #1 in West Coast mineral bulk exports, and #2 on the West Coast for auto imports. The deep draft channel supports 40 million tons of cargo each year and 40,000 local jobs. The inland system supports 10 million tons of cargo, valued at $2 billion annually. Overall trade on the system, and throughout the Pacific Northwest, is expected to increase significantly in the future.


NYK nets part share
in Chinese car terminal

TOKYO — NYK and three Chinese shareholder companies have agreed to a deal that would give NYK a 12.5 percent stake in Guangzhou Port Nansha Automotive Terminal Co. Ltd. (NAT), which operates a car-carrier terminal in the port of Nansha, Guangzhou. Since its establishment in 2005, NAT has expanded its business as a finished-car logistics complex in South China, handling around 240,000 finished-cars in 2010. The volume of units handled ranks third after Shanghai and Tianjin among car-carrier terminals in China. NYK already operates dedicated car-carrier terminals in the ports of Dalian, Tianjin, and Shanghai, and this investment in Nansha, Guangzhou, gives NYK capital participation in dedicated car-carrier automobile terminals at China’s four major ports.


Boeing begins test flights
for fifth 747-8 freighter

EVERETT — Boeing reports it successfully conducted the first flight of the fifth 747-8 Freighter last Thursday. The airplane, coded as RC523, took off from Paine Field in Everett for a three-hour, 30-minute flight before returning to Paine Field. The flight included a standard two-hour, 30-minute "B1" flight profile that Boeing conducts on all production airplanes prior to delivery, plus an hour of engineering testing woven into the profile. This is the fifth 747-8 Freighter being used in the flight-test program. Each airplane is used for a specific set of tests, with this airplane focusing on functionality and reliability testing. The airplane will remain based at Paine Field throughout its test plan.


American Trucking Associations
taps McNally as vice president

ARLINGTON, VA — Bill Graves, president and chief executive officer of the American Trucking Associations, has named Sean McNally vice president for Communications and press secretary. Prior to taking the position, Mr. McNally spent nearly 10 years as a reporter for Transport Topics, the weekly newspaper covering trucking and freight transportation. Mr. McNally worked on the state and federal government beats and was most recently the publication's senior government reporter with responsibility for Capitol Hill and the Department of Transportation. Mr. McNally will lead ATA’s Office of Communications, directing communications strategy for the association and its member motor carriers. He assumes the position February 7, 2011.


NEWS BULLETIN
Friday, February 4, 2011

IMO sets sights on
fighting piracy in 2011

LONDON — The escalating problem of piracy off the coast of Somalia is “completely unacceptable” and requires an urgent and coordinated response, United Nations Secretary-General Ban Ki-moon said at the launch on February 3, 2011 of the International Maritime Organization (IMO)’s action plan to promote the 2011 IMO World Maritime Day theme: “Piracy: orchestrating the response.” Speaking at IMO’s London Headquarters, Mr. Ban welcomed the decision of IMO to pay special attention to piracy during the year ahead. “This is a timely and important initiative,” he said.


TSA member carriers say
new vessels will be put to work

OAKLAND — Cargo demand will continue to improve during 2011 as the U.S. economy recovers, roughly in line with new vessel capacity entering the Asia-U.S. trade lane over that period. With a traditional third quarter peak season now considered likely, container lines in the Transpacific Stabilization Agreement (TSA) say that additional ships now being delivered will ultimately be needed and well-utilized. TSA noted 2011 industry forecasts of 8.8 percent growth in Transpacific capacity and added that delays on new vessel deliveries, heavy demand for ships on Intra-Asia routes and other factors will temper the impact of that growth as well. Reinvesting in carrier service networks to meet demand growth and serve customers’ specialized needs, the agreement said, makes its recommended program of adjustments to rates and charges all the more critical. TSA’s internal reporting indicates that Q4 2010 carrier vessel utilization was higher than that portrayed in recent analyst or press reports, and were typical for the onset of the traditional post-holiday winter season. Average West Coast utilization among TSA’s 15 members, for example, ranged from a high of 96 percent in late October to a low of 79 percent in early December. East Coast utilization ranged from 94 percent in early October to 84 percent at the end of November. Utilization in early January 2011 was 88 percent to the West Coast and 95 percent to the East Coast. TSA is a research and discussion forum of major container shipping lines serving the trade from Asia to ports and inland points in the U.S.


US rail freight traffic
surges during week

WASHINGTON, DC — The Association of American Railroads (AAR) reports rail traffic was up for the first week in 2011 ending January 8, with U.S. freight railroads originating 285,108 carloads, up 20.1 percent compared with the same week last year. Intermodal traffic for the week totaled 213,665 trailers and containers, up 8.6 percent compared with the same week in 2010, with container volume up 10 percent and trailer volume up one percent. Several changes to the carload commodity groups took effect this week including the addition of two new groups, Iron and Steel Scrap (Group 18) and Waste and Nonferrous Scrap (Group 19). Fifteen of the 20 carload commodity groups increased from the comparable week in 2010. Those carload commodity groups posting increases of over 50 percent included: metallic ores, up 55.7 percent; and crushed stone, sand and gravel, up 54.3 percent. Commodities reporting declines were waste and nonferrous scrap, down 9.5 percent; nonmetallic minerals, down 8.9 percent; grain mill products, down one percent; pulp, paper and allied products, down .3 percent; and coke, down .2 percent.


General Maritime completes
sale of product tankers

NEW YORK — General Maritime Corporation has announced that it has completed the previously announced sale of the first two of three product tankers, the 2004-built GENMAR CONCORD and the 2005-built STENA CONTEST, to affiliates of Northern Shipping Fund Management Bermuda, Ltd. General Maritime received net proceeds of $41.1 million for the two vessels. As previously announced, General Maritime expects to complete the sale of the third product tanker, the 2005-built STENA CONCEPT, to an affiliate of Northern Shipping by February 15, 2011, generating net proceeds of $21.0 million. Upon completing the sale of the STENA CONCEPT, General Maritime will have received net proceeds of $61.7 million (excluding upfront fees), from this transaction. General Maritime expects to use the proceeds from the vessel sales to repay the company's $22.8 million bridge loan in the first quarter of 2011.


NYK named to Global 100
for fifth consecutive year

TOKYO — For the fifth consecutive year, NYK has been selected as one of the Global 100 Most Sustainable Corporations in the World (the Global 100). The 2010 Global 100 was announced on January 29, 2011, at the World Economic Forum annual meeting in Davos, Switzerland. Of the 3,000 candidate corporations from 22 countries around the world, 100 companies were selected, including 19 Japanese companies from a variety of industries, including insurance and electronics. Launched in 2005, the Global 100 was compiled through 2009 by Corporate Knights and Innovest Strategic Value Advisors. During that time, the list was determined by analyzing extra-financial drivers of risk and shareholder value, including companies’ performance on social, environmental, and strategic governance issues. Since the 2010 list, Corporate Knights has collaborated with three partners and made use of the following key evaluation indicators:
- Sales per unit consumption/emission amount of energy, CO2, water, and waste
- Ratio of CEO’s compensation to average employee compensation
- Relevance between directors’ compensations and the degree of contribution to social
sustainability
- Ratio of female board directors
- Level of compliance to Global Reporting Initiative or GRI guidelines
- Rate of sales to research and development costs, etc.
Encouraged by its inclusion in the 2011 Global 100, NYK reports it will continue to take an active role in social issues, including the conservation of the environment, to contribute to the achievement of a better global society.


NEWS BULLETIN
Thursday, February 3, 2011

Mediterranean Shipping Company
to begin Port of Seattle calls

SEATTLE — The Port of Seattle welcomes a new carrier to its harbor beginning this week. MSC, Mediterranean Shipping Company, has added Seattle to its California Express service that calls Gioia Tauro, Naples, Civitavecchia, and La Spezia, Italy; Valencia, Spain; Cristobal and Balboa, Panama; Long Beach and Oakland, California; and Vancouver BC. MSC ships in the 3000 TEU range will be calling at the port's Terminal 18, managed by SSA Terminals. The first ship to call the port on this service is the MSC VIENNA. The Port of Seattle maintains four container terminals, with 24 cranes, 11 container berths up to 50 feet deep, along with close proximity to two national rail hubs, and interstate highways within minutes of all terminals for efficient truck access. Cargo handled at the Port of Seattle's seaport generates over 135,000 jobs for Washington, and creates over $2 billion in annual business revenue for the region.


Coos Bay Port Commissioners
look to fill Budget Committee vacancy

COOS BAY — The Board of Commissioners of the Oregon International Port of Coos Bay is seeking qualified applicants to fill a vacancy on the district’s Budget Committee. The committee appointment is for a three-year term, ending with the 2013/14 fiscal year. The Budget Committee comprises the five members of the district’s board and five residents of the port district who represent the public. The committee reviews budget proposals prepared by port staff for each fiscal year and forwards its recommendations to the Board of Commissioners. A letter of interest stating experience and background is due by 5 p.m., Monday, February, 28, 2011. Letters must be submitted to the Oregon International Port of Coos Bay, ATTN: Chief Financial Officer, P.O. Box 1215, Coos Bay OR 97420. Letters also can be delivered to the port’s administrative office at 125 Central Ave., Suite 300, in downtown Coos Bay; or sent as an e-mail attachment to portcoos@portofcoosbay.com.


CN working with MPA
to build service agreements

MONTREAL — CN, the Montreal Port Authority (MPA) and the two companies that operate the port's three key container terminals have announced two levels of service agreements (LSAs) that will drive a strong focus on supply chain efficiencies. The two agreements - one signed by CN, the port authority and Montreal Gateway Terminals Partnership (MGT), which operates the CAST and RACINE terminals, and another signed by CN, the port authority and Termont Montreal -- complement a framework agreement that CN and the MPA reached in September 2010. Under last fall's agreement, CN and the port decided to develop a best-practices vision for the gateway's supply chain, improve productivity, and leverage these gains to increase their share of global container traffic. The CN-MPA-terminal operator agreements establish key performance indicators to improve the fluidity of the gateway. These include specific metrics for container dwell times at terminals, rail-car availability, rail on-time performance, and vessel performance.


Railroad aids expansion
of businesses in 2010

NORFOLK, VA — Norfolk Southern Corporation participated in the location of 67 new industries and the expansion of 28 existing industries along its rail lines in 2010. New plants and expansions represented an investment of $2.5 billion by Norfolk Southern customers and are expected to create 2,000 jobs in the railroad's territory, eventually generating more than 132,000 carloads of new rail traffic annually. Norfolk Southern assisted state and local government and economic development officials throughout 16 states in helping customers identify ideal locations for new and expanded facilities. The balance of other projects secured during 2010 was distributed among several of the broad product areas Norfolk Southern serves. Norfolk Southern works with state and local economic development authorities on projects involving site location and development of infrastructure to connect customers to its rail system and provides free and confidential plant location services, including industrial park planning, site layout, track design, and logistics assistance. During the past 10 years, Norfolk Southern's Industrial Development Department has participated in the location or expansion of 1,062 facilities, representing an investment of $24 billion and creating more than 45,000 customer jobs in the territory served by the railroad.


IMO taps Peter Brady
for eighth term as training chair

LONDON — Jamaica reports it has maintained its position at the heart of international maritime rule-making following the re-election of Rear Admiral Peter Brady, director general of the Maritime Authority of Jamaica, as chairman of the Standards of Training and Watchkeeping (STW) sub-Committee at the International Maritime Organization (IMO), the United Nations' body governing marine safety, security and pollution prevention. He was unanimously re-elected for the eighth time as STW Chairman for 2012 at the recently-held 42nd session of the STW Sub Committee which was attended by over 400 delegates from member states party to the STCW Convention as well as associate members, intergovernmental organisations and NGOs. Admiral Brady was nominated by the Philippines and seconded by Chile with support from member states including India, Malta, Marshall Islands, Panama, Singapore, South Africa the US, Spain, Bahamas, Mexico, Ghana, Indonesia among others. 2012 will be an important year for the work of the STW Sub-Committee after the Standards of Training, Certification and Watchkeeping Convention (STCW) and STCW Code was amended at a Diplomatic Conference held in Manila from June 21-25 last year.


NEWS BULLETIN
Wednesday, February 2, 2011

Hanjin warning customers
of Egypt shipment delays

SEOUL — Hanjin Shipping is advising customers of possible delays in delivery of Egypt-destined and transshipped cargoes both east and west bound due to the on-going political unrest in Egypt. Hanjin reports the Suez Canal is operating normally; however, Egypt’s ports have shut down and cargo operations have been disrupted. The carrier will have vessels carrying Egypt-destined and transshipped cargoes skip Egypt’s ports and have the containers discharged at alternative ports. These containers will be delivered to Egypt’s terminals later upon port re-opening. Hanjin says some delay is anticipated in delivery of Egypt-destined and transshipped cargoes although they are unable to say how long. Hanjin will continue to receive new bookings for Egypt-destined and transshipped shipments, for which some additional charges might have to be collected for compensation of the extra costs due to this unavoidable situation.


Harley Marine Services
expanding presence in Gulf

SEATTLE — Harley Marine Services, a full service marine transportation company, has expanded its service to the American Gulf by acquiring the former MGI of Houston, Texas. This business will be operated under Harley Marine Gulf incorporating all of the quality and safety procedures established within the Harley Marine family of companies. Formed in 1976, MGI has eight boats on long term charter but operate 12 double hull barges in all. Four of the barges transfer product between terminals, and eight are bunker barges that work in the Houston, Galveston and Lake Charles areas with two stationed in New Orleans. The transaction extends Harley Marine’s geographical presence to the Gulf Coast and will open the door to new opportunities to excel in the marine transportation industry. Harley Marine Services is a full service marine transportation company providing services along the United States West Coast, Alaska, New York/New Jersey Harbor and Gulf Coast including the transportation and storage of petroleum products, ship assist and escort, and the transportation of general cargo.


Federal Maritime Commission
wants input on slow steaming

WASHINGTON, DC — The Federal Maritime Commission (FMC) has issued a Notice of Inquiry (NOI) to solicit public comment on the impact of slow steaming on U.S. ocean liner commerce. Generally, the FMC seeks public comment as to how the practice of slow steaming has 1) impacted ocean liner carrier operations and shippers’ international supply chains; 2) affected the cost and/or price of ocean liner service; and 3) mitigated greenhouse gas emissions. Responses are due on or before April 5, 2011.
Submit comments to:
Karen V. Gregory, Secretary
Federal Maritime Commission
800 North Capitol Street, N.W. Room 1046
Washington, D.C. 20573-0001
Or e-mail non-confidential comments to: secretary@fmc.gov
(e-mail comments as attachments preferably in Microsoft Word or PDF)
The FMC has decided to request public comment on the effects of slow steaming practices on ocean liner operations, shippers’ supply chains and their underlying businesses, capacity availability, container availability, ocean freight rates, fuel surcharges, and greenhouse gas emissions. Although slow steaming primarily affects the operations of shippers, carriers and rate discussion agreements, the FMC encourages all interested parties, including ports, maritime terminal operators, trade associations, environmental groups, and other governmental entities to submit comments or to identify any economic and environmental data and studies related to slow steaming. For more information, go to www.fmc.gov.


Trucking top performer
for US business shipments

WASHINGTON, DC — Trucking is the predominant mode used by businesses to ship freight in almost all states, according to State Summaries: 2007 Commodity Flow Survey from the Department of Transportation’s Bureau of Transportation Statistics (BTS). BTS, a part of the Research and Innovative Technology Administration, reported that at least 60 percent of the total value of shipments for 42 states and the District of Columbia in 2007 was carried by trucks alone. By weight, trucks transported at least 60 percent of shipments originating in 40 states, including the District of Columbia. The Commodity Flow Survey (CFS) is conducted as part of the Census Bureau’s Economic Census, occurring every five years. It is the primary source of national and state-level data on domestic freight shipments in the United States. Based on information from approximately 100,000 businesses, the CFS measures domestic freight flows from establishments in mining, manufacturing, wholesale, and selected retail industries, as well as shipments from auxiliary establishments. The 2007 CFS was undertaken through a partnership between BTS and the Census Bureau. In the South, eight states and the District of Columbia had more than 80 percent of the value of originating shipments transported by trucks. Only in Louisiana and Texas did trucks carry less than 60 percent of the freight. In the Northeast, New Hampshire was the only state where trucks carried less than 70 percent. The states in the West generally had the lowest percent of freight carried by trucks. Six states in the West had less than 60 percent of originated freight by value transported by truck, and trucks carried more than 70 percent only in Arizona and Nevada. See the report for a map with percentages for all states. In all Northeast states, trucks carried more than 75 percent of the originating freight by weight. In contrast, in the West, trucks carried more than 75 percent in only four of 13 states. Trucks carried less than 50 percent by weight in North Dakota, New Mexico, Louisiana, Montana, West Virginia, and Wyoming. Trucks still carried the most freight in those states, except for Montana, West Virginia, and Wyoming, where rail was the predominant mode. Only 5.6 percent of Wyoming freight by weight was transported by truck. American businesses covered by the CFS shipped about $11.7 trillion worth of goods in 2007, weighing 12.5 billion tons and generating 3.3 trillion ton-miles. Trucking continued to dominate the nation’s movement of freight, accounting for 71 percent of the value ($8.3 trillion), 70 percent of weight (8.8 billion tons), and 39 percent of the ton-miles (1.3 trillion ton-miles). Among the goods shipped, electronic and office equipment was the commodity with the highest value at $1.0 trillion. Gravel and crushed stone was the largest commodity by weight at 2.0 billion tons. Coal was the commodity accounting for the most ton-miles with 836 billion in 2007.


Crowley Maritime moving
California logistics office

JACKSONVILLE, FL — Crowley Maritime has relocated its Inglewood, Calif., logistics office to a larger facility in San Pedro, Calif. The new office is strategically located near the ports of Los Angeles and Long Beach, and will continue to provide ocean, air freight and Customs brokerage services. The relocation is part of a larger company expansion along the U.S. West Coast to supply customers in the Far East and in Central and South America with Crowley's logistics services. The move also supports Crowley's expanding trucking, intermodal and logistics capabilities on the West Coast. The new Crowley address is 300 South Harbor Boulevard, San Pedro, Calif., 90731. The office phone number has also been changed to (310) 348-3700. Staff members' email addresses - including the main office address, CLILAXBrokerageOps@crowley.com - will remain unchanged.


NEWS BULLETIN
Tuesday, February 1, 2011

Braemar Seascope study eyes
vessel construction numbers

BEDFORDSHIRE, UK — Industry concerns over the glut of newbuilding deliveries last year may have been overplayed as the three major shipping market segments - dry bulk, container and tanker - avoided significant oversupply, according to figures released by Braemar Seascope. The London-listed shipbroker compared the orderbook at the end of 2009 with the full-year delivery statistics for 2010. The gap between what was anticipated to deliver and what actually delivered offers an insight into the development of the shipbuilding and freight markets.


VIPs meet to celebrate
Port of Portland transport projects

PORTLAND — Officials from the Port of Portland, Oregon Department of Transportation and railroads were joined by U.S. Rep. Earl Blumenauer, Oregon State Representative Tina Kotek, and Portland Mayor Sam Adams in Rivergate Industrial District yesterday, to recognize the completion of three vital transportation projects and the commencement of a fourth. The projects will improve connections, capacity and safety for rail and road infrastructure to increase the competitiveness of Rivergate Industrial District, Portland’s largest industrial park. Presenters emphasized the importance of investing in multimodal transportation infrastructure for future freight mobility, job generation and economic vitality. Ramsey Rail Yard and South Rivergate Rail Yard Expansion will eliminate bottlenecks, improving capacity and velocity for rail traffic. North Lombard Widening added turn lanes to support increasing traffic and a multiuse pathway to improve safety. Leadbetter Overcrossing enhances connectivity for truck service to distribution centers and warehouses in the area without impeding rail traffic. Attendees toured the new facilities following the event to see the results firsthand. The four projects were funded with a combination of public and private investments from: the Port of Portland, City of Portland Bureau of Transportation; ConnectOregon; the Oregon Transportation Investment Act; the Metropolitan Transportation Improvement Program; the federal Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU); Union Pacific Railroad and BNSF Railway.


PCBs found in oil samples
from grounded barge in Columbia

PORTLAND — Follow up tests of oil samples taken from a 431-foot derelict vessel, DAVY CROCKETT, have detected low levels of polychlorinated biphenyls (PCBs). Washington State Dept. of Ecology received reports Thursday of a light, non-recoverable sheen at mile marker 115 on the Columbia River, the site of the vessel. Oil samples taken from the engine room hold of the vessel detected approximately 3.44 parts per million (ppm) of PCBs. Coast Guard, Ecology, Oregon Dept. of Environmental Quality and other agencies responded and are working to cleanup oil and monitor the vessel. Federal regulations for PCBs in oil require specialized handling and disposal for levels at 50 ppm or greater. Environmental and public health agencies’ regulations vary as to what constitutes acceptable concentrations of PCBs. Federal regulations require that water containing PCBs must be below 0.003 ppm to be discharged to navigable waters. One part per million is roughly the equivalent of one teaspoon per 1,300 gallons. A primary and secondary containment area has been established around the vessel, consisting of approximately 18,000 feet of sorbent boom and 2,800 feet of hard boom. Incident managers have consulted with federal and state environmental agencies, state and county public health agencies and other interested parties regarding the potential effects of the PCBs added to the river on public health and the environment.


NAFTA partner trade
up during November

WASHINGTON, DC — Trade using surface transportation between the United States and its North American Free Trade Agreement (NAFTA) partners Canada and Mexico was 15.5 percent higher in November 2010 than in November 2009, reaching $68.1 billion, according to the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation. BTS, a part of the Research and Innovative Technology Administration, reported that the value of U.S. surface transportation trade with Canada and Mexico fell 3.6 percent in November 2010 from October 2010. Month-to-month changes can be affected by seasonal variations and other factors. Surface transportation consists largely of freight movements by truck, rail and pipeline. In November, 86.1 percent of U.S. trade by value with Canada and Mexico moved on land. The value of U.S. surface transportation trade with Canada and Mexico in November was up 8.2 percent compared to November 2005, and up 36.7 percent compared to November 2000, a period of 10 years. Imports in November were up 29.7 percent compared to November 2000, while exports were up 45.8 percent.


Crowley expands scholarships
to include Nicaragua students

JACKSONVILLE, FL — Crowley's commitment to education and to the countries that it serves was evident recently as the company expanded its Thomas B. Crowley Memorial Scholarship program to include college students in Nicaragua. Through a partnership with the Universidad de Ciencia Comerciales (Commerical Sciences University) in Managua, Nicaragua, Crowley will now offer a scholarship to one exemplary student per year in the country. While a new student will be chosen and awarded each year, the scholarship will be renewed for previous recipients until their graduation date. This month marked the first presentation of said scholarship in Nicaragua to Irene Carolina Real Jarquin. A native of Managua, Ms. Real Jarquin is a freshman majoring in business administration. She was chosen because of her strong academic records and financial need Ms. Real Jarquin expressed her gratitude for the award and reiterated her commitment to taking advantage of the opportunity given to her by Crowley, saying that the scholarship would not only help her achieve her educational goals but would allow her to become a future leader helping her to make a difference in her country of Nicaragua.